The gazetteProperty sale · 15 February 2025
Capital gains tax on French property in 2026: the calculation, the holding-period allowances, the surtax and the LMNP depreciation added back since 15 February 2025
The gain on a French property other than your main home is taxed at 19% income tax and 17.2% social levies, after holding-period allowances: the income tax disappears after 22 years, the levies after 30 years. A surtax of 2% to 6% applies to the taxable gain above €50,000. Since 15 February 2025, LMNP depreciation reduces the purchase price.
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Give the property, the purchase and sale prices and dates, the works, and whether it was let furnished.
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When is the sale of a French property exempt?
The sale of your main home (résidence principale) on the day of sale is exempt, with its immediate outbuildings sold at the same time (CGI, article 150 U, II, 1° and 3°). The law sets no minimum period of occupation: it must be your usual and actual home, the one you live in for most of the year (fiche F10864).
Also exempt: the first sale of a home other than your main home, if you have not owned your main home in the previous 4 years, for the share of the price reinvested within 24 months in buying or building your main home; and a sale at a price of €15,000 or less (CGI, article 150 U, II, 1° bis and 6°). Retired people and holders of a disability card on modest incomes who are not liable to the property wealth tax (IFI) are exempt under conditions (article 150 U, III).
Sources: CGI 150 U · Service-public F10864
How is the gross gain calculated?
The sale price is the one in the deed, less the selling costs you paid and can prove, such as the mandatory diagnostics, plus any sums paid to you (CGI, article 150 VA; fiche F10864).
The purchase price is increased by the actual purchase costs or a flat 7.5%, and by proven construction, extension or improvement works; for a building sold more than 5 years after purchase, a flat 15% replaces missing invoices (CGI, article 150 VB, II). For a property received by gift or inheritance, the purchase price is the value used for the duties (fiche F10864).
Sources: CGI 150 VA · CGI 150 VB · Service-public F10864
How does the holding period reduce the tax?
For income tax, the gross gain falls by 6% for each year of ownership beyond the fifth, then by 4% in the 22nd year: the tax disappears after 22 years (CGI, article 150 VC). For social levies, the allowance is 1.65% a year from the sixth to the 21st year, 1.60% in the 22nd, then 9% a year: they disappear after 30 years (Social Security Code, article L136-7).
Each base is then taxed at its own rate: 19% income tax (CGI, article 200 B) and 17.2% social levies. The notary calculates the tax, files the return and pays it to the land registry service (service de la publicité foncière) at the sale (fiche F10864).
Sources: CGI 150 VC · Social Security Code L136-7 · CGI 200 B · Service-public F10864
What does the LMNP depreciation add-back change?
For a sale from 15 February 2025, the purchase price is reduced by the depreciation deducted from your rents under non-professional furnished letting (LMNP), except the part matching works already counted (CGI, article 150 VB, III; loi n° 2025-127, article 84). With €40,000 of depreciation, the gross gain of the example rises from €55,000 to €95,000.
The rule does not cover properties in a residence for students, young people in training or people over 65, nor in some care or long-term care establishments (article 150 VB, III).
Sources: CGI 150 VB · Loi n° 2025-127, article 84
How is a non-resident taxed on a sale in France?
A non-resident pays the same 19% tax on the gain from a property located in France (CGI, articles 244 bis A and 200 B). If covered by the social security of an EEA country, Switzerland or the UK without being charged to a French scheme, they pay only the 7.5% solidarity levy instead of 17.2% (Social Security Code, article L136-7, I ter; CGI, article 235 ter; impots.gouv.fr).
A former main home is exempt if sold no later than 31 December of the year after leaving for an EU country or a state bound to France by the required assistance agreements, without having been made available to anyone else (article 244 bis A, I). A national of the EU or the EEA who lived in France for at least 2 years can also exempt one home up to €150,000 of gain (article 150 U, II, 2°).
Sources: CGI 244 bis A · CGI 200 B · Social Security Code L136-7 · CGI 235 ter · impots.gouv.fr, non-residents · CGI 150 U
How much tax on the gain from your sale?
Enter the purchase and sale prices and dates, the works and, for a furnished let, the depreciation deducted: the gazette applies the allowances, the rates and the 2025 LMNP rule. The example: a home bought for €200,000 on 15 March 2016 and sold for €300,000 on 20 November 2026.
Fictional example · gazette of your gain
€15,994.55 of estimated tax on a gross gain of €55,000.00.
- Gross gain
- €55,000.00
- Income tax, 19%
- €7,315.00
- Social levies, 17.2%
- €8,679.55
- Estimated total
- €15,994.55
Sale until 14 February 2025
- LMNP: depreciation with no effect on the gain
- Purchase price increased by costs and works
- Social levies of 17.2%
Sale since 15 February 2025
- LMNP: depreciation deducted from the purchase price
- Except student, senior or care residences
- Social levies kept at 17.2% in 2026
Applicable provisions
In view of your sale, the French Tax Code and the Social Security Code:
- Adjusted purchase price: €200,000.00 + €15,000.00 of costs at the flat 7.5% + €30,000.00 of works at the flat 15%, that is €245,000.00 (CGI, article 150 VB).
- Gross gain: €300,000.00 less €245,000.00, that is €55,000.00 (CGI, articles 150 V and 150 VA).
- Ownership: 10 whole years, an allowance of 30% for income tax and 8.25% for social levies (CGI, article 150 VC; Social Security Code, article L136-7).
- Income tax: €38,500.00 × 19%, that is €7,315.00 (CGI, article 200 B).
- Social levies: €50,462.50 × 17.2%, that is €8,679.55, with CSG kept at 9.2% on these gains in 2026 (Social Security Code, article L136-8, IV).
- Taxable gain of €50,000 or less: no surtax (CGI, article 1609 nonies G).
Indicative estimate: the notary calculates the tax, files it and pays it from the sale price; actual purchase costs can replace the flat 7.5% if they are higher.
What has changed for French property gains since 2019?
Non-residents, LMNP depreciation, the 2026 CSG and the new allowance for homes let unfurnished.
A non-resident covered by the social security of another EEA country or Switzerland no longer pays CSG or CRDS on French property gains, only the 7.5% solidarity levy (prélèvement de solidarité); the tax authority applies the same rule to UK residents (impots.gouv.fr).
Sources: impots.gouv.fr, non-residents · Social Security Code L136-7
For sales from this date, the depreciation deducted under non-professional furnished letting (LMNP) reduces the purchase price, so it increases the gain; student, senior and care residences are excluded (loi n° 2025-127, article 84; CGI, article 150 VB, III).
Sources: Loi n° 2025-127, article 84 · CGI 150 VB
The 2026 social security budget law raises CSG on capital income to 10.6%, but keeps it at 9.2% on property gains: their social levies stay at 17.2% (Social Security Code, article L136-8).
Sources: Social Security Code L136-8 · Loi n° 2025-1403
The 2026 budget law creates a depreciation allowance for new or renovated homes let unfurnished as a main home and bought until 31 December 2028; on a sale, it will also come off the purchase price (loi n° 2026-103, article 47; CGI, article 150 VB, III).
Sources: Loi n° 2026-103, article 47 · CGI 150 VB
How much allowance and tax, by holding period?
The two allowances, and the total tax on a gross gain of €100,000.
| Whole years of ownership | Allowance for income tax | Allowance for social levies | Total due on €100,000 |
|---|---|---|---|
| 5 years or less | 0% | 0% | €38,200 |
| 6 years | 6% | 1.65% | €36,656.20 |
| 10 years | 30% | 8.25% | €30,481 |
| 15 years | 60% | 16.5% | €21,962 |
| 21 years | 96% | 26.4% | €13,419.20 |
| 22 years | 100% | 28% | €12,384 |
| 25 years | 100% | 55% | €7,740 |
| 30 years | 100% | 100% | €0 |
The total adds the 19% income tax, the 17.2% social levies and the surtax, due here up to 13 years of ownership, while the taxable gain exceeds €50,000; building land pays no surtax.
Sources: CGI 150 VC · Social Security Code L136-7 · CGI 200 B · CGI 1609 nonies G
What does article 150 VB of the French Tax Code say on depreciation?
The text that, for sales from 15 February 2025, takes depreciation off the purchase price.
III. Le prix d’acquisition est minoré du montant des amortissements admis en déduction en application des i et j du 1° du I de l’article 31 ou de l’article 39 C, à l’exception de ceux de ces amortissements constitutifs de dépenses prises en compte pour la détermination de l’impôt sur le revenu en application de la première phrase du 4° du II du présent article.
In English, briefly (our summary, not an official translation): The purchase price is reduced by the depreciation deducted under i and j of 1° of I of article 31 or under article 39 C, except depreciation that corresponds to expenses already counted for income tax under the first sentence of 4° of II of the same article. The same III leaves out properties in a residence for students, young people in training or people over 65, some social or care establishments and long-term care establishments. The reference to article 31, i and j, dates from the 2026 budget law.
What do sellers ask about French property gains?
Must I have lived in the home for 6 months to be exempt?
No: no minimum period is set; the home must be your usual and actual home, lived in for most of the year, on the day of sale (CGI, article 150 U, II, 1°; fiche F10864).
Does a loss on a property reduce another gain?
No, as a rule: a gross loss on a property is not taken into account (CGI, article 150 VD).
Who files and pays the tax on the gain?
The notary: they calculate the tax, file the return and pay it at the sale; you then report the gain on your income tax return (fiche F10864).
Does the surtax apply to building land?
No: the tax on high property gains does not apply to building land (CGI, article 1609 nonies G).
Does the 2026 CSG rise affect property gains?
No: CSG stays at 9.2% on these gains, 17.2% of social levies in total (Social Security Code, article L136-8, IV).
Which texts is this capital-gain calculation based on?
- French Tax Code (CGI), article 150 U (scope and exemptions)Légifrance, in French
- French Tax Code (CGI), article 150 VA (sale price)Légifrance, in French
- French Tax Code (CGI), article 150 VB (purchase price, flat allowances, depreciation)Légifrance, in French
- French Tax Code (CGI), article 150 VC (holding-period allowance)Légifrance, in French
- Social Security Code, article L136-7 (social allowance, non-residents)Légifrance, in French
- Social Security Code, article L136-8 (CSG rates)Légifrance, in French
- French Tax Code (CGI), article 200 B (19% rate)Légifrance, in French
- French Tax Code (CGI), article 1609 nonies G (surtax above €50,000)Légifrance, in French
- Loi n° 2025-127 of 14 February 2025, the 2025 budget law, article 84 (LMNP depreciation)Légifrance, Journal officiel, in French
- Loi n° 2026-103 of 19 February 2026, the 2026 budget law, article 47 (homes let unfurnished)Légifrance, Journal officiel, in French
- French Tax Code (CGI), article 150 VD (loss)Légifrance, in French
- French Tax Code (CGI), article 244 bis A (non-residents)Légifrance, in French
- Income tax: capital gain on property (fiche F10864)Service-public.fr, in French · checked on 15 April 2026
- Property capital gains of non-residentsimpots.gouv.fr, in French
- French Tax Code (CGI), article 235 ter (7.5% solidarity levy)Légifrance, in French
- Loi n° 2025-1403 of 30 December 2025, the social security budget law for 2026Légifrance, Journal officiel, in French
Texts cited last checked: 26 September 2026